Windows XP Hangs During Shutdown

My computer has suddenly started having shutdown issues. I am running Windows XP. When I tell it to shutdown, nothing happens, I just sit there and look at my desktop. If I try to open anything I get the message "Application failed to initialize properly because windows station is shutting down." The only way to get it to shutdown is to hold in the power button which I do not like doing.

Any ideas where I should start to troubleshoot this. Is it an registry issue? I have CCleaner installed but have not run the registry cleaner yet.

 

You could have a malware problem - go to the malware forum and go through the Read & RUN ME FIRST instructions (4th item from top).
Also, try here:
http://support.microsoft.com/kb/308029

 

The "Windows station" error is supposed to appear at the point that it is doing.

As soon as the shutdown button on the start menu is pressed the computer is supposed to prevent any other programs opening.

@kkrause: please try the registry cleaner.